New Function of Financing Warehouse in Chattel Mortgage Financing under Property Law

The promulgation of the PRC Property Law provided enterprises with a new financing channel of chattel mortgage. Compared with chattel pledge financing, which previously was the only choice under the Guarantee Law, chattel mortgage financing enjoys many advantages, and at the same time, brings with the difficulty of monitoring. By using a financing warehouse run by a third party logistics firm, combined with a reasonably designed system, the monitoring difficulty can be resolved and thus the chattel mortgage can be more applicable.